Nordstrom Inc (JWN)
Interest coverage
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 251,000 | 222,000 | 123,000 | 133,000 | 465,000 | 577,000 | 701,000 | 650,000 | 492,000 | 223,000 | 202,000 | -319,000 | -1,047,000 | -777,000 | -690,000 | -104,000 | 786,000 | 819,000 | 731,000 | 761,000 |
| Interest expense (ttm) | US$ in thousands | 104,000 | 105,000 | 113,000 | 121,000 | 128,000 | 134,000 | 138,000 | 144,000 | 246,000 | 261,000 | 273,000 | 284,000 | 181,000 | 169,000 | 141,000 | 113,000 | 103,000 | 90,000 | 95,000 | 100,000 |
| Interest coverage | 2.41 | 2.11 | 1.09 | 1.10 | 3.63 | 4.31 | 5.08 | 4.51 | 2.00 | 0.85 | 0.74 | -1.12 | -5.78 | -4.60 | -4.89 | -0.92 | 7.63 | 9.10 | 7.69 | 7.61 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $251,000K ÷ $104,000K
= 2.41
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Nordstrom Inc's interest coverage ratio has fluctuated over the past 20 reporting periods. A higher ratio indicates that the company is more capable of servicing its debt with its operating income.
The trend in Nordstrom Inc's interest coverage ratio has been volatile. The ratio ranged from a low of -5.78 in January 2021 to a high of 9.10 in November 2019. It reached a positive peak in the early periods and then dropped sharply into negative territory in the later periods, signaling potential financial distress.
During the most recent period, the interest coverage ratio was 2.41, which implies that Nordstrom Inc generated operating income 2.41 times greater than its interest expenses. This indicates a moderate ability to cover interest costs with operating income.
Overall, Nordstrom Inc's interest coverage ratio shows varying levels of performance over time, indicating the importance of closely monitoring the company's ability to meet its interest obligations in the future.
Peer comparison
Feb 3, 2024